Banks like San Francisco’s Wells Fargo & Co. could be shut out from their long-standing involvement in the program.

There will be (a) resistance to what some will see as the next step in our march to socialism; (b) concern that the scheduled July 2010 changeover is too soon to be absorbed by the 4,400 or so colleges affected; and (c) suggestions that a private sector component side-by-side with the government program would make for healthy competition, thereby enhancing the program’s effectiveness.

Don’t bank on any of the above to alter the bill’s trajectory.

In a statement, Wells Fargo said it believes the changes “will have unintended consequences that are not in the best interest of the students and their families.” It did not elaborate on those consequences, including what they might mean for Wells, which has been one of the more prominent banks in the student loan business.

John Dean, counsel for the Consumer Bankers Association said private banks are probably relieved to get out of the origination part, which, in these credit crunch days, has become more trouble than it’s worth.Besides, fees earned handling student loans are small potatoes on most banks’ balance sheets, including Wells’, he believes. Bank critics say such fees have been more lucrative.

In Dean’s view, however, the contacts that banks establish with youthful borrowers via the loan program are truly worth their weight in gold. Think future customers.

Last month, the Department of Education chose among six finalists, including Wells Fargo, for long-term contracts to service its existing direct loans. Unfortunately, Wells didn’t make the chosen four. However, I’m told, the proposed government takeover of the entire guaranteed student loan program will “build on” the department’s choices.